Why JEPI and JEPQ Rank Among Our Top High-Income ETF Picks

With a sea of ETFs from which to choose, picking the right one can be akin to finding a needle in the haystack. But investing should be strategic, not random; it calls for an intentional strategy aligning with your personal risk and reward profile. This is especially true when you have a specific goal in mind, such as creating a new income stream from your investment. 

When targeting high-income ETFs that are specifically architected to deliver consistent monthly income streams to investors, you’ve got options. In this universe, two JPMorgan ETFs — the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) — have captured our attention. Not only can investors expect to earn passive income but they should benefit from a strategy that prioritizes growing distributions.

Beyond their regular cash distributions, these funds offer something traditional index trackers simply cannot, thanks to their seasoned management teams. Both JEPI and JEPQ are actively managed funds that harness the power of income-generating equity opportunities that combine fundamental research with derivatives-based income strategies. 

Whether investors are seeking crucial income in retirement or aiming to bolster their revenue streams on the path to financial milestones, both JEPI and JEPQ possess features that make them shine for most any portfolio.

JPMorgan Equity Premium Income ETF (JEPI)

One of the attractive features of the JPMorgan Equity Premium Income ETF (JEPI) is its strategy to deliver monthly income, a valuable attribute for income-focused investors. JEPI generates that income by combining dividends from low-volatility U.S. stocks with option premiums from selling call options on the S&P 500 index. This equity premium strategy targets a high yield without exorbitant downside risk, taking a balanced approach between income generation and capital preservation.

JEPI’s portfolio leans toward value-oriented, large-cap names—think Visa (NYSE: V), Mastercard (NYSE: MA), and Progressive (NYSE: PGR)—but also includes a few high-flying tech titans like Microsoft (Nasdaq: MSFT), Meta (Nasdaq: META), and Nvidia (Nasdaq: NVDA). Its active management gives it flexibility to pivot as market cycles shift, which they have been doing a lot of, while still targeting returns comparable to the S&P 500 with lower volatility.

Had an investor put $20,000 into JEPI at the start of 2025 (at $57.49/share), they would have picked up around 348 shares. Based on $2.48891 in per-share dividends paid through July, that investor would have collected approximately $865.20 in income so far this year. With a 30-day SEC yield of 7.64% and an expense ratio of 0.35%, JEPI continues to stand out as a reliable monthly income generator in an uncertain market climate.

JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

If you’re looking to combine monthly income with exposure to some of the market’s most innovative companies, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a name to know. With a strategy to replicate the performance of the tech-heavy Nasdaq-100 but with lower volatility, JEPQ blends growth potential with consistent yield, something that’s hard to find in today’s market. Like its counterpart JEPI, this ETF uses an equity premium strategy that mixes major stocks with a complex call-writing model to generate monthly income.

As of early July 2025, JEPQ sports a 30-day SEC yield of 11.2%, making it an attractive option for retirees or income-focused investors looking to bolster cash flow. The ETF has over 100 holdings and maintains a 0.35% expense ratio, which is competitive with the industry. Its portfolio includes some of the biggest names in tech and communications — think Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Broadcom (NASDAQ: AVGO) and Meta Platforms (Nasdaq: META) — along with select mid-cap growth plays.

Let’s run the numbers: if you had invested $20,000 in JEPQ in early 2025 (when shares traded at $56.72), you would have picked up about 352 shares. Based on dividends paid through July 2025—$3.1860 per share—you’d be sitting on roughly $1,121.47 in dividend income just seven months into the year. That’s a compelling total return in a market that’s been anything but predictable. With year-to-date price appreciation of just over 2% and trailing 12-month returns nearing 10%, JEPQ is quietly delivering what many investors are looking for in a choppy market that has yet to make up its mind.   

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